The new 10-year agreement between India and Iran to develop the Chabahar port carries the “potential risk” of sanctions, the U.S. State Department said, casting a cloud over whether the special exemption India had received from the U.S. in 2018 will still be applicable for the next phase of development and investments in the Iranian project.
In particular, India’s plans under the new agreement to invest approximately $120 million in equipment for the port and a credit window of $250 million are likely to be under the scanner if the U.S. decides against extending its sanctions carve-out for India.
In response to specific questions about the long-term contract signed between India Ports Global Ltd. and Port and Maritime Organisation (PMO) of Iran on Monday, in the presence of Shipping Minister Sarbananda Sonowal and his Iranian counterpart Mehrdad Bazrpash in Tehran, the State Department spokesperson said the U.S. had noted the agreement and said that there was “no” specific exemption for it.
